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NCAA, Conferences To Pay $208.7 Million In Cost Of Attendance Settlement
The NCAA and leagues across the country will pay former football and basketball players who did not receive cost of attendance stipends.
February 4, 2017
The NCAA and leagues across the country will pay former football and basketball players who did not receive cost of attendance stipends.
The NCAA and 11 major conferences that help make up the collegiate sports landscape announced on Friday a preliminary settlement of $208.7 million with plaintiffs who received athletic scholarships before cost-of-attendance stipends were allowed. If this deal is approved, the average student-athlete who played his or her respective sport for four years would receive about $6,763.
The settlement would be fully funded by NCAA reserves, the association said. No school or conference will be required to contribute.
The federal class-action lawsuit, which was filed in 2014 by former West Virginia football player Shawne Alston and later combined with other lawsuits covering Division I men’s and women’s basketball players and FBS football players who competed from 2009-10 through 2016-17 and did not receive a cost-of-attendance stipend, claimed the NCAA and leagues across the country violated antitrust law by capping the value of an athletic scholarship at less than the actual cost of attending college.
In January 2015, the ACC, Big Ten, Big 12, Pac-12 and SEC passed legislation that allowed schools to increase the value of an athletic scholarship to the federally determined actual cost of attending a college or university. Cost of attendance includes expenses beyond tuition, room and board, etc.
While parameters of a deal are in place, it still must be approved by a federal judge. If approved, it would be the second-largest settlement in NCAA history. Jason White’s case involving cost of attendance in 2008 resulted in a $230 million settlement.
“This is a watershed settlement—recovering nearly all of the damages in the case,” said attorney Steve Berman, who represented the athletes. “We’re incredibly pleased with this settlement that brings student-athletes the payment and recognition they deserve.”
The NCAA and Division I football conferences are also currently facing dozens of new lawsuits by former players seeking damages for the mishandling of concussions.
